NABHA S BORKAR AND SURENDRA B BORKAR PARTNERS OF NABHA INDUSTRIES Vs. STATE BANK OF INDIA MAIN BRANCH KHANPUR ROAD

JUDGEMENT

(1.) IN case where a loan is sanctioned by the bank, but when the title of the property which is mortgaged is found to be defective, can it be said that non-disbursement of loan is unjustified? In our view it cannot be said to be unjustified, in any manner. Apart from the prime object of social welfare, the Banks shall also safe-guard their financial interests as banking business is for earning profit.

(2.) THIS complaint is filed against State Bank of India (hereinafter referred to as the Bank), Branch Belgaum, contending that non-disbursement of the sanctioned loan has resulted in loss to the Complainants and hence they are entitled to a compensation of Rs.75,45,142/- on various grounds. Before dealing with the contentions we would refer to few admitted facts:

(3.) ON 5.2.1998 the Officers of the Bank decided to inspect the proposed factory premises after a partial disbursement of the loan, to verify as to whether the Complainants had installed the electrical equipment. It is the say of the Bank that the Complainants did not allow the officials of the Bank to inspect the premises.